Is the stock price of Coles (ASX: COL) a purchase for Christmas?

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NS Coles Group Co., Ltd. (ASX: COL) Stock prices have turned positive in recent weeks.

Since this time in September, the share of supermarket giants has risen by more than 6%.

This is comparable to the wide and flat ones. S & P / ASX200 Index (ASX: XJO) Same period.

Can Coles’ stock price continue to rise?

The good news is that many brokers believe that Coles’ stock price can still be high from here.

One of them Morgans.. According to a recent note, the broker has set an additional rating on the company’s stock and a price target of $ 19.90.

Based on the current Coles stock price of $ 18.07, this means investors could rise 10% over the next 12 months.

In addition, the broker paid a full-frank dividend of 61 cents per share in 2022. This brings the potential total revenue to about 13.5%.

What did the broker say?

Morgans was pleased with Coles’ performance in the first quarter. Both supermarket and liquor businesses have exceeded broker expectations with similar (LFL) sales results.

The broker commented: “Supermarket LFL sales increased 1.4% due to continued household consumption due to the blockade of NSW, ACT and VIC during the quarter and strong online growth. […] Liquor LFL sales increased 1.4% (vs MorgansF -1.6%) despite repeated COVID-led growth of 17.8% at pcp. “

This ultimately led brokers to upgrade their earnings forecasts, which I feel left Coles stock trading at an attractive level.

Morgans concludes: “COL is a defensive business with a strong market position and a healthy balance sheet. Supermarket and liquor sales growth is modest as the economy resumes and rising immunization rates reduce the risk of blockages. However, the stock continues to offer good value as it trades at a yield of 23x and 3.5% of 22F PE. “

Is the stock price of Coles (ASX: COL) a purchase for Christmas?

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